What Is Really Happening Globally & Where Gold Is Headed
December 8, 2012
With continued volatility in key markets, today Michael Pento writes exclusively for King World News to let readers know what is happening around the world and where gold is headed. Here is Pento’s piece: “The prevailing wisdom currently on Wall Street is that gold and commodity stocks will go nowhere next year because interest rates are about to rise in real terms. For instance, last week Goldman Sachs cut its 12-month gold-price forecast by 7.2%.”
Michael Pento continues:
“The precious metal “is near an inflection point,” according to the firm. And while the metal may rally slightly in 2013, a growing U.S. economy and a gradual rise in real interest rates may send investors towards other investments, their analysts said.
The consensus is that the global economy will rebound in 2013; causing central bankers in Europe and the U.S. to raise the cost of borrowing faster than what the rate of inflation is increasing. However, not only is the global economy not going to find its footing next year, but central bankers are going to slam their gas pedals through the floor; sending interest rates yet lower in real terms….